Tracking property prices is an area of interest for many Doctors and Dentists this year. Fuelled by concerns of a property market crash following the EU Referendum, means property owners are hasty to make any rash decisions. Our monthly Property Price Update gives you a summary of what the experts in the market are saying.
This article does not constitute advice. Professional advice should be taken prior to acting on any part of it. Your home may be repossessed if you do not keep up repayments on your mortgage or any other debt secured on it.
What is happening with UK property prices?
January was a weak month for the UK property market, with only a 0.2 percent increase in average house prices, month-on-month.
February though, showed better than expected results with a 0.6 percent increase from January.
Reuters economists had only predicted another 0.2 percent rise, so this was positive.
Annually, prices in February were 4.5 percent higher, year-on-year, which was also an improvement on January’s results that showed a 4.3 percent increase.
January had been the weakest annual increase since November 2015 and raised further concerns about the effects Brexit could have on the market this year.
” …concerns about Brexit are likely to weigh on the market in 2017″ Nationwide
Current forecasts and predictions
Economic and property experts are commenting on how the housing market appears to be surprisingly resilient to the early effects of the EU Referendum.
George Osborne had firmly predicted a sharp fall in property prices if the country voted to leave.
However, it is believed that the full effects have yet to be felt, and most economists predict a general slow-down this year, as inflation means less disposable income for consumers.
“Britain’s economy was likely to slow this year as the country prepares to leave the European Union and inflation eats into consumers’ spending power”
Robert Gardner, Nationwide economist
Current predictions by Nationwide support a small increase in 2017, of around 2 percent, which is certainly more positive than a decline.
A further 30 property market economists and analysts have also forecast an average growth of:
- 2.5 percent in 2017
- 2.3 percent in 2018
- 3 percent in 2019
The low cost of borrowing and high demand of people seeking property is helping to support house prices.
It’s important to remember though that these are just forecasts. If you are serious about a property transaction in 2017, it is important to keep a regular check on the latest trends.
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